Semiconductor ETFs attracted $12 billion in inflows as investors returned to the sector ahead of a significant rebound for chip equities, underscoring continued faith in the long-term prognosis for artificial intelligence and semiconductor demand. After weeks of strong selling, earnings from big technology companies calmed fears about AI expenditure and helped drive a broader market bounce. LSEG Lipper fund flow statistics revealed U.S. equities funds saw net inflows of $11.83 billion in the week to July 29, with technology-focused funds drawing in roughly $4.9 billion, the largest weekly inflow since early July. The buying came after better-than-expected quarterly results from Microsoft and Amazon lifted market sentiment, bringing back investor confidence after earlier disappointments from Alphabet and Tesla. Semiconductor equities were choppy through July, with the Philadelphia Semiconductor Index falling from its June peak as investors questioned if the quick rate of AI infrastructure spending can continue. The iShares Semiconductor ETF (SOXX) had one of its worse monthly performances in years before bargain hunters jumped back in and it recovered. Institutional investors mostly viewed the downturn as an opportunity to purchase rather than an indication of eroding fundamentals. Analysts said next earnings from major chipmakers will be the largest trigger for the sector, with the current bounce driven by revenue growth, AI data centre expansion and management direction. Markets will be watching intently for upcoming earnings from big semiconductor companies for further indications on AI capital.